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CT UK Social Bond Fund – education, learning and skills

Supporting wider participation in higher education with a focus on promoting social mobility 

Within this outcome grouping, the Fund seeks to make investments that contribute to widening participation and expanding access to education. This includes investing directly into higher education providers, as well as investments into other organisations running or financing educational programmes.

An Institute for Fiscal Studies paper concluded that there are significant differences in income mobility for children across the country, with a strong North-South gradient. Children from low-income families who grew up in the lowest mobility areas – overwhelmingly in the North – are expected to end up around fifteen percentiles lower in the income distribution as adults compared to those from the highest mobility areas – overwhelmingly in the SouthEast. Differences in education attainment can explain 25% of the variation in absolute mobility for men and 45% of the variation for women. This indicates the importance of education in equalising opportunities.19

Higher education significantly increases lifetime earnings, especially for disadvantaged pupils and for those attending selective universities. Yet there is a widening gap in participation. Higher education progression rate for young people who are on free school meals (FSM) is only 28% in contrast to 47% for those not on free school meals (non-FSM).

The latest review of education spending highlights the fall in spending across all areas of education in the last decade: school spending per pupil in England fell by 9% in real terms between 2009–10 and 2019–20, which represents the largest cut in over 40 years.

Higher Education Progression Rate for Young People

Source: Institute of Fiscal Studies, 2020-21

Deprived schools have seen larger cuts over the last decade. The most deprived secondary schools saw a 14% real-terms fall in spending per pupil between 2009– 10 and 2019–20, compared with a 9% drop for the least deprived schools. The Pupil Premium, which is funding to improve education outcomes for disadvantaged pupils, has also failed to keep pace with inflation since 2015.

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Discover how the strategy seeks to make investments that contribute to widening participation and expanding access to education.

11 May 2023
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For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group. This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness. In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

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Important information

For professional investors

For marketing purposes. Your capital is at risk. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Not all services, products and strategies are offered by all entities of the group. Awards or ratings may not apply to all entities of the group. This material should not be considered as an offer, solicitation, advice, or an investment recommendation. This communication is valid at the date of publication and may be subject to change without notice. Information from external sources is considered reliable but there is no guarantee as to its accuracy or completeness. In the UK: Issued by Threadneedle Asset Management Limited, No. 573204 and/or Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.

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